PUC Staff Recommend Amount Previously Collected From Default Service Customers Be Credited To Customers

August 12, 2019

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Reporting by Paul Ring • ring@energychoicematters.com

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Consistent with a prior recommendation, Staff of the Public Utilities Commission of Ohio have recommended that AEP Ohio credit to customers PUCO and OCC assessment fees collected from customers under gross-up factor applied to the bypassable auction cost reconciliation rider (ACRR) for the period August 2016 through June 2018

Staff had previously recommended PUCO and OCC assessment costs collected via the ACRR gross-up factor for the period June 2015 to July 2016 be credited to customers

"Because Staff continues to believe that AEP was not authorized to include assessment fees in the gross-up factor, which results in double recovery, Staff recommends that the Commission direct AEP to credit to customers the PUCO and OCC assessment fees collected from August of 2016 through June of 2018 in addition to the prior recommendation. Staff estimates the total credit for the time period of June of 2015 through May of 2018 to be approximately $3.5 million," Staff said

In a prior recommendation, Staff had said, "Staff clarifies that there is no direct, causal relationship between the utility’s assessment fees and revenues. Therefore, assessment fees are not generation related costs and are not prudently incurred CBP [competitive bid plan] costs. AEP Ohio’s (Company or AEP) base rates, which both SSO and shopping customers pay, include 100% of its assessment fees. This raises the issue of double recovery. It is not appropriate to include assessment fees in AEP’s SSO riders."

In previously filed comments on a similar prior Staff recommendation, AEP Ohio said that PUCO's electric security plan order for the relevant period permitted the ACRR gross-up factor to include amounts related to PUCO and OCC assessments

Under the electric security plan at AEP Ohio effective June 1, 2018, the PUCO and OCC assessment ceased being charged under the GENE Rider (bypassable energy for SSO customers), GENC Rider (bypassable capacity for SSO customers), and ACRR.

Staff recommended to the Commission that it direct AEP to credit to customers all PUCO and OCC assessment fees collected through the GENE, GENC, and ACRR gross-up factor.

Case No. 15-W52-EL-RDR

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